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Example 4

I was interested in attending an auction to buy some land. I had to pay 拢100 to the auction house to receive a detailed catalogue and to be able to bid at the auction. I bought some land at the auction with a successful bid of 拢248,000. I also had to agree to pay the auction house鈥檚 fees (buyer鈥檚 premium) of 拢5,000 incurred by the vendor.

The chargeable consideration given for the property is 拢253,000 (purchase price plus vendor鈥檚 auction house fee). The initial 拢100 was not chargeable consideration because it was not paid for the property but rather for the right to participate in the auction - it was not in any way conditional on the purchase of the land.